TOPSPORTS (06110) reported a year-on-year decline of 5.8% in revenue and 9.7% in net profit for the first half of FY2026, reflecting ongoing pressure from foot traffic and discounts. The company has maintained its full-year performance guidance.

In the short term, weak in-store foot traffic and a rising proportion of deeply discounted online channels continue to weigh on omnichannel pricing. However, over the medium to long term, as industry inventory health improves, sales momentum of core brands like Nike recovers, and newly exclusive brands such as SOAR, Norrna, and Norda in the running and outdoor categories gain traction, the company is expected to gradually return to steady growth.

CITIC Securities values the company at 15x PE for FY2026, corresponding to a target price of HK$3.5, and maintains an "Overweight" rating.